Short Term versus Long Term
Too often investors buy energy stocks with a short-term view. There isn't anything short term in nature about this industry. Whether it is drilling appraisal wells, building hydro projects, or establishing new solar photovoltaic power generation, these projects are by their very nature long term.
If investors are seeking near-term gratification, energy investments may disappoint the savviest investor. Short-term investors may be better served with retail, consumer products, or bank stocks, but not energy stocks. Securing financing for many alternative energy projects can take several quarters if not years. Power generation projects can similarly take years in the planning and financing phases, in addition to several ...
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